Sec. 211. Notification and automatic enrollment procedures for borrowers who are delinquent on loans
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Section 455(d) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(d) ), as amended by this Act, is further amended by adding at the end the following: The Secretary shall establish and implement, with respect to any borrower described in subparagraph (B), procedures to— use return information of the borrower (and the borrower's spouse, if applicable) disclosed under section 6103(l)(13) of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to determine the income and family size of the borrower (and the borrower's spouse, if applicable) without further action by the borrower; allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to determine the income and family size of the borrower (and the borrower's spouse, if applicable); and provide the borrower with an opportunity to update the return information so disclosed before the determination of the income and family size of the borrower for purposes of this paragraph.
With respect to each borrower of a covered loan who is at least 31 days delinquent on such loan and who has not been subject to the procedures under this paragraph for such loan in the preceding 62 days, the Secretary shall, as soon as practicable after such 31-day delinquency, provide to the borrower the following: Notification that the borrower is at least 31 days delinquent on at least 1 covered loan, and a description of all delinquent covered loans, nondelinquent covered loans, and noncovered loans of the borrower.
A brief description of the repayment plans for which the borrower is eligible and the covered loans and noncovered loans of the borrower that may be eligible for such plans, based on information available to the Secretary. The amount of monthly payments for the covered and noncovered loans under each repayment plan identified under clause (ii), based on information available to the Secretary, including, if the income information of the borrower is available to the Secretary under subparagraph (A), the income, family size, tax filing status, and tax year information on which each such monthly payment is based.
Clear and simple instructions on how to select the repayment plans. An explanation that, in the case of a borrower for whom adjusted gross income is unavailable— if the borrower selects to repay the covered loans of such borrower pursuant to an income-driven repayment plan that defines discretionary income in such a manner that an individual not required under section 6012(a)(1) of the Internal Revenue Code of 1986 to file a return with respect to income taxes imposed by subtitle A of such Code may have a calculated monthly payment greater than $0, the borrower will be required to provide the Secretary with other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine an appropriate repayment schedule; and if the borrower selects to repay such loans pursuant to an income-driven repayment plan that is not described in subclause (I), the borrower will not be required to provide the Secretary with such other documentation of income, and the borrower will have a calculated monthly payment of $0.
An explanation that the Secretary shall take the actions under subparagraph
(C)with respect to such borrower, if— the borrower is 80 days delinquent on 1 or more covered loans and has not selected a new repayment plan for the covered loans of the borrower; and in the case of such a borrower whose existing repayment plan for the covered loans of the borrower is not an income-driven repayment plan, the monthly payments under such existing repayment plan are higher than such monthly payments would be under an income-driven repayment plan. Instructions on updating the information of the borrower obtained under subparagraph (A). With respect to each borrower described in subparagraph
(B)whose existing repayment plan for the covered loans of the borrower is described in clause (vi)(II) of subparagraph (B), and who has not selected a new repayment plan for such loans in accordance with the notice received under such subparagraph and who is at least 80 days delinquent on such a loan, the Secretary shall, as soon as practicable— in a case in which any of the borrower’s covered loans are eligible for an income-driven repayment plan— provide the borrower with the income-driven repayment plan that requires the lowest monthly payment amount for each covered loan of the borrower, compared to any other such plan for which the borrower is eligible; or if more than one income-driven repayment plan would offer the borrower the same lowest monthly payment amount, provide the borrower with the income-driven repayment plan that has the most favorable terms for the borrower; if the plan selected under subclause
(I)is not the income-driven repayment plan that would have the lowest monthly payment amount if the borrower were eligible for such plan for the borrower’s covered loans and noncovered loans, notify the borrower of the actions, if any, the borrower may take to become eligible for such income-driven repayment plan; and authorize the borrower to change the Secretary’s selection of a plan under this clause to any plan described in paragraph
(1)for which the borrower is eligible; and in a case in which none of the borrower’s covered loans are eligible for an income-driven repayment plan, notify the borrower of the actions, if any, the borrower may take for such loans to become eligible for such a plan. .
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Sec. 211
Notification and automatic enrollment procedures for borrowers who are delinquent on loans
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